THE share market was lower at noon, led by losses in the financials sector.
At noon (AEST), the benchmark S&P/ASX200 index was down 14.1 points, or 0.32 per cent, at 4398.6 points, while the broader All Ordinaries index had dropped 12.5 points, or 0.28 per cent, to 4416.2 points.
On the Sydney Futures Exchange, the September share price index futures contract was 25 points lower at 4373 points, with 14,123 contracts traded.
Bell Financial Group senior adviser Chris Kimber said the market was holding up reasonable well, thanks to the mining sector, which is riding high on the good production news from BHP Billiton yesterday.
The miner released strong production figures and said its petroleum and iron ore divisions both had achieved annual production records.
Start of sidebar. Skip to end of sidebar.
End of sidebar. Return to start of sidebar.
"BHP and Rio are up and I think that's after BHP's above-expectations report yesterday," Mr Kimber said.
"We liked everything they had to say. They're spinning off plenty of cash."
Rising iron ore prices were creating more interest in the mining sector, he said.
"We think the recent fall in iron ore prices has probably finished, so we think they're starting to turn back up a little bit now."
BHP shares gained 22c to $38.97 while Rio Tinto added 55c to $68.35.
There were losses across the financials sector, which Mr Kimber said followed downbeat economic news from the US overnight.
On Wall Street overnight, shares closed sharply lower after Federal Reserve chairman Ben Bernanke confirmed investor fears that the economy has weakened.
"In that sort of environment, I think we're still seeing a bit of selling on our banks," he said.
Among the big four banks, Commonwealth fell 63c, or 1.23 per cent, to $50.52, Westpac dropped 8c to $22.44, ANZ slipped 24c to $22.25 and NAB lost 10c to $24.10.
In news today, beer and wine maker Foster's has blamed a light fingered interloper for the publication of an internal earnings target.
Foster's said reports of a fiscal 2011 earnings target of $84 million for its Australian and New Zealand wine business was for internal management purposes.
Foster's shares gained 5c to $5.89.
Energy company Santos says operations at Cooper Basin will continue to be affected by the flooding in Central Australia.
Santos said production fell 11 per cent in the three months to June 2010, compared with the prior corresponding period.
Santos dropped 21c, or 1.53 per cent, to $13.54.
Manufacturing cools in JuneStocks pummelled at the open
